The Great Rotation Remains Mainly Spin

Despite a pullback in the past few days, bonds' breakout looks sustained. Utilities also provide more than current yield.

The "great rotation" from bonds into stocks seems to be in everyone's thinking lately, but the charts do not bear it out. The bond market's upside price breakout—and breakdown in yields—is still holding.

The Treasury bond market had been moving counter to the stock market since the financial crisis began several years ago. But even as the stock market moves further into record high ground, prices of Treasuries remain rather...